Zacks Research Upgrades Stagwell (NASDAQ:STGW) to Hold

Key Points

• Stagwell was upgraded by Zacks Research from a "strong sell" rating to a "hold" rating, reflecting a shift in analysts' perspectives on the stock.
• The stock has seen various ratings from different analysts, with three ratings as "Buy" and three as "Hold," leading to an average consensus rating of "Moderate Buy" with a price target of $8.17.
• Stagwell reported a Q2 earnings per share of $0.17, which was below the consensus estimate, despite achieving a revenue of $706.82 million, exceeding expectations.

Stagwell (NASDAQ:STGW - Get Free Report) was upgraded by analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a research note issued to investors on Monday, September 1st,Zacks.com reports.

A number of other research firms have also recently commented on STGW. Wells Fargo & Company cut their price objective on Stagwell from $9.00 to $8.00 and set an "overweight" rating for the company in a research report on Monday, May 12th. Morgan Stanley cut their price objective on Stagwell from $8.00 to $7.00 and set an "equal weight" rating for the company in a research report on Friday, August 1st. Rosenblatt Securities restated a "buy" rating and issued a $10.00 price objective on shares of Stagwell in a research report on Monday, July 28th. Benchmark cut Stagwell from a "strong-buy" rating to a "hold" rating in a research report on Friday, May 9th. Finally, Needham & Company LLC reiterated a "buy" rating and set a $6.36 price target on shares of Stagwell in a research report on Tuesday, July 22nd. Three analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, Stagwell currently has a consensus rating of "Moderate Buy" and an average price target of $8.17.

Stagwell Stock Down 2.1%

STGW traded down $0.12 on Monday, hitting $5.46. The company had a trading volume of 225,279 shares, compared to its average volume of 1,022,361. The stock has a fifty day moving average price of $5.26 and a 200-day moving average price of $5.33. Stagwell has a 12-month low of $4.03 and a 12-month high of $8.18. The company has a debt-to-equity ratio of 1.90, a quick ratio of 0.86 and a current ratio of 0.86. The stock has a market capitalization of $1.41 billion, a price-to-earnings ratio of 11.85 and a beta of 1.47.

Stagwell (NASDAQ:STGW - Get Free Report) last posted its earnings results on Thursday, July 31st. The company reported $0.17 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.19 by ($0.02). Stagwell had a negative net margin of 0.06% and a positive return on equity of 14.54%. The company had revenue of $706.82 million during the quarter, compared to analysts' expectations of $696.03 million. During the same quarter last year, the firm earned $0.14 EPS. Stagwell's revenue for the quarter was up 5.3% on a year-over-year basis. Stagwell has set its FY 2025 guidance at 0.750-0.880 EPS. Analysts predict that Stagwell will post 0.59 EPS for the current fiscal year.

Hedge Funds Weigh In On Stagwell

Several hedge funds have recently bought and sold shares of STGW. Parkside Financial Bank & Trust increased its holdings in Stagwell by 43.0% during the 2nd quarter. Parkside Financial Bank & Trust now owns 9,981 shares of the company's stock worth $45,000 after purchasing an additional 3,003 shares during the period. Tower Research Capital LLC TRC increased its holdings in Stagwell by 311.8% during the 2nd quarter. Tower Research Capital LLC TRC now owns 10,790 shares of the company's stock worth $49,000 after purchasing an additional 8,170 shares during the period. Ameritas Investment Partners Inc. increased its holdings in Stagwell by 51.6% during the 2nd quarter. Ameritas Investment Partners Inc. now owns 11,790 shares of the company's stock worth $53,000 after purchasing an additional 4,013 shares during the period. Vident Advisory LLC purchased a new stake in Stagwell during the 1st quarter worth about $64,000. Finally, Point72 Asia Singapore Pte. Ltd. purchased a new stake in Stagwell during the 4th quarter worth about $69,000. Institutional investors and hedge funds own 35.61% of the company's stock.

About Stagwell

Stagwell Inc provides digital transformation, performance media and data, consumer insights and strategy, and creativity and communications services. The company operates through three segments: Integrated Agencies Network, Brand Performance Network, and Communications Network. It designs and builds digital platforms and experiences that support the delivery of content, commerce, service, and sales; creates websites, mobile applications, back-end systems, content and data management systems, and other digital environments; designs and implements technology and data strategies; and develops software and related technology products, including artificial intelligence (AI)-enabled communications, research, and media technology, cookie-less data platforms for advance targeting and activation, software tools for e-commerce applications, specialty media solutions in the augmented reality space, and text messaging applications for consumer engagement.